AB 1986: Craft distillers: alcoholic beverage licensees: donations.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-09-20
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow specified licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 25503.9 of the Business and Professions Code proposed by SB 1164 to be operative only if this bill and SB 1164 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow specified licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 25503.9 of the Business and Professions Code proposed by SB 1164 to be operative only if this bill and SB 1164 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow those specified licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 25503.9 of the Business and Professions Code proposed by SB 1164 to be operative only if this bill and SB 1164 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow those licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
This bill would incorporate additional changes to Section 25503.9 of the Business and Professions Code proposed by SB 1164 to be operative only if this bill and SB 1164 are enacted and this bill is enacted last.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow those licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license and would prohibit a licensee authorized to donate or sell under the above conditions from doing so if it knows or reasonably should know that the alcoholic beverages will be used in this manner license.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application, issuance, and suspension of alcoholic beverage licenses. Existing law establishes specified types of alcoholic beverage licenses and prescribes the rights and duties of the respective licensees. Existing law authorizes the department to issue a craft distillers license with specified privileges, including the conducting of tastings subject to specified conditions and the sale of up to 2.25 liters of prepackaged containers of the licensees spirits per day per consumer to a person attending these tastings.
This bill would authorize a craft distiller to deliver up to 2.25 liters of prepackaged containers to a consumer, at an address located in this state, who attended an instructional tasting conducted by the licensee on its licensed premises.
The Alcoholic Beverage Control Act provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control.
This bill would expand the prohibition exemption to allow craft distillers to give or sell distilled spirits to certain nonprofit organizations, as specified. The bill would allow those licensees authorized to donate or sell alcoholic beverages under this provision to provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by the department. The bill would also prohibit, with regard to nonprofit organizations that purchase or receive donations, as described above, and that also have a permanent retail license, from using those alcoholic beverages in the exercise of any privilege or business under that license and would prohibit a licensee authorized to donate or sell under the above conditions from doing so if it knows or reasonably should know that the alcoholic beverages will be used in this manner.
Existing law prohibits a person without the appropriate license from exercising a privilege or performing any act for which the license is required, and a violation of this prohibition is a misdemeanor or a felony, as specified.
By expanding the definitions of various crimes, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 1.5.Section 25503.9 of the Business and Professions Code is amended to read:25503.9.(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 25503.9 of the Business and Professions Code proposed by both this bill and Senate Bill 1164. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.9 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1164, in which case Section 1 of this bill shall not become operative.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 1.5.Section 25503.9 of the Business and Professions Code is amended to read:25503.9.(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 25503.9 of the Business and Professions Code proposed by both this bill and Senate Bill 1164. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.9 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1164, in which case Section 1 of this bill shall not become operative.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 1.5.Section 25503.9 of the Business and Professions Code is amended to read:25503.9.(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may section, except for a beer and wine wholesaler that also holds an importers license, may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 25503.9 of the Business and Professions Code proposed by both this bill and Senate Bill 1164. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.9 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1164, in which case Section 1 of this bill shall not become operative.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 1.5.Section 25503.9 of the Business and Professions Code is amended to read:25503.9.(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, craft distiller, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 2.Section 1.5 of this bill incorporates amendments to Section 25503.9 of the Business and Professions Code proposed by both this bill and Senate Bill 1164. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 25503.9 of the Business and Professions Code, and (3) this bill is enacted after Senate Bill 1164, in which case Section 1 of this bill shall not become operative.
SEC. 2.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license. A licensee authorized to sell or donate alcoholic beverages pursuant to this section shall not do so under circumstances in which it knows or reasonably should know that the alcoholic beverages will be used by the purchaser or recipient of the donation in any business operated under a permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a nonprofit corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 3.SEC. 2.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)Notwithstanding any other provision, a licensed craft distiller may sell up to the equivalent of 2.25 liters in any combination of prepackaged containers per day per consumer of distilled spirits manufactured or produced by the licensee at its premises to a consumer attending an instructional tasting conducted by the licensee on its licensed premises pursuant to subdivision (c) of Section 23363.1.
(b)A licensed craft distiller may, pursuant to this section, deliver the equivalent of 2.25 liters in any combination of prepackaged containers to a consumer, at an address located in this state, who attended an instructional tasting conducted by the licensee on its licensed premises.
SEC. 2.Section 25503.9 of the Business and Professions Code is amended to read:25503.9.(a)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or an importer general licensee from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701i, 23701k, 23701l, 23701r, or 23701w of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or importer general licensee pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(b)Nothing in this division prohibits a winegrower, a beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine, or the holder of a limited off-sale retail wine license from giving or selling wine, a beer manufacturer from giving or selling beer, a distilled spirits manufacturer, craft distiller, rectifier, or a distilled spirits manufacturers agent from giving or selling distilled spirits, or a beer and wine wholesaler that also holds an importers license from giving or selling beer, wine, or distilled spirits at prices other than those contained in schedules filed with the department, to any of the following:
(1)A nonprofit charitable corporation or association exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code.
(2)A nonprofit incorporated trade association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and Chapter 4 (commencing with Section 23701) of Part 11 of Division 2 of the Revenue and Taxation Code, and the members of which trade association are licensed under this division. However, the wine, beer, and distilled spirits shall be used solely for a convention or meeting of the nonprofit incorporated trade association.
(3)A nonprofit corporation or association that is exempt from payment of income taxes under the provisions of the Internal Revenue Code of the United States and is defined as a tax exempt organization under Section 23701a, 23701d, 23701e, 23701f, or 23701r of the Revenue and Taxation Code. Wine, beer, and distilled spirits given or sold by a winegrower, beer manufacturer, distilled spirits manufacturer, distilled spirits manufacturers agent, or licensed importer pursuant to this subdivision may be furnished only in connection with public service or fundraising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, or similar events.
(c)A corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license. A licensee authorized to sell or donate alcoholic beverages pursuant to this section shall not do so under circumstances in which it knows or reasonably should know that the alcoholic beverages will be used by the purchaser or recipient of the donation in any business operated under a permanent retail license.
(d)A licensee authorized to donate or sell alcoholic beverages to a corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by the department.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Sep 20, 2018 | Chaptered by Secretary of State - Chapter 579, Statutes of 2018. |
| Sep 20, 2018 | Approved by the Governor. |
| Sep 10, 2018 | Enrolled and presented to the Governor at 3:30 p.m. |
| Aug 30, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 29, 2018 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 29, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 21, 2018 | Read second time. Ordered to third reading. |
| Aug 20, 2018 | Read third time and amended. Ordered to second reading. |
| Aug 9, 2018 | Read second time. Ordered to third reading. |
| Aug 8, 2018 | Read third time and amended. Ordered to second reading. |
| Jul 3, 2018 | Read second time. Ordered to third reading. |
| Jul 2, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jun 21, 2018 | In committee: Hearing postponed by committee. |
| Jun 13, 2018 | Read second time. Ordered to third reading. |
| Jun 12, 2018 | From committee: Do pass. (Ayes 10. Noes 0.) (June 12). |
| May 24, 2018 | Referred to Com. on G.O. |
| May 10, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 10, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 3, 2018 | Read second time. Ordered to Consent Calendar. |
| May 2, 2018 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (May 2). |
| Apr 19, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 21. Noes 0.) (April 18). Re-referred to Com. on APPR. |
| Apr 12, 2018 | Re-referred to Com. on G.O. |
| Apr 11, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended. |
| Feb 8, 2018 | Referred to Com. on G.O. |
| Feb 2, 2018 | From printer. May be heard in committee March 4. |
| Feb 1, 2018 | Read first time. To print. |
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Date
|
Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Aug 30, 2018 | AB 1986 CUNNINGHAM Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 29, 2018 | Assembly 3rd Reading AB1986 Cunningham By Skinner | Senate Floor |
Passed |
|
| Jun 12, 2018 | Do pass | Senate Standing Committee on Governmental Organization |
Passed |
|
| May 10, 2018 | AB 1986 CUNNINGHAM Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 2, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2018 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Alcohol Justice | ** Against | Aug 21, 2018 |
| California Teamsters | ** Against | Apr 17, 2018 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1986
Author:(Cunningham)
As Amended Ver:August 20, 2018
Majority vote
ASSEMBLY: | 73-0 | (May 10, 2018) | SENATE: | 39-0 | (August 29, 2018) |
Original Committee Reference: G.O.
SUMMARY: This bill expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to nonprofit organizations for the purpose of assisting in fund-raising efforts.
The Senate amendments:
- Add chaptering out language in case this bill and SB 1164 (Skinner) of the current legislative session are both enacted.
- Remove beer and wine wholesalers that also holds an importer's license from the provisions of the bill that allow other alcohol licensees from providing services to assist in nonprofit events.
EXISTING LAW:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the "tied-house" law or "three-tier" system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.
- Authorizes ABC to issue a craft distiller's license that authorizes the manufacture of distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 100,000 gallons of distilled spirits per fiscal year.
- Authorizes a craft distiller to sell up to 2.25 liters of prepackaged containers of the licensee's spirits per day per consumer to a person attending tastings.
- Provides that the Act does not prohibit various alcoholic beverage licensees, including distilled spirits manufacturers, from giving or selling beverages, as specified, to certain charities and prescribes conditions in this regard.
- Defines an "on-sale" license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An "off-sale" license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill: According to the author's office, "California is home to an ever-growing and vibrant beverage industry, and our laws should promote opportunities for them to grow their brands and customer base. This legislation is a modest attempt to allow craft distillers to have privileges already granted to other beverage industries in California. By allowing them the ability to donate their products to a nonprofit, not only do they garner good will in the community, but it helps the nonprofit put on a more inclusive and worthwhile event."
Craft distiller license: A craft distiller license, also known as a Type 74 license, was created in 2015. A holder of a craft distiller license is authorized to manufacture up to a total of 100,000 gallons of distilled spirits per fiscal year. A licensee is also authorized to sell up to the equivalent of 2.25 liters per day per consumer to a consumer attending an instructional tasting conducted by the licensee.
The licensee is also authorized to sell all beers, wines, brandies, or distilled spirits to consumers for consumption on the premises in a bona fide eating-place owned by the licensee. The licensee is also authorized to have upon its licensed premises all beer, wines, and distilled spirits, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Additionally the holder of a craft distiller's license is authorized to hold ownership in up to two on-sale general licenses.
The current craft distiller license does not allow a craft distiller to donate their products to nonprofits for fundraising activities, a privilege that is granted to various other licensees. According to ABC, there are currently 88 craft distiller's licenses that would be able to take advantage of this new privilege.
Related/Prior Legislation: SB 1164 (Skinner) of 2018. Would make various changes to the craft distiller's license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee's spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Appropriations Committee)
AB 1890 (Levine) of the current legislative session. Would allow a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, as long as specified conditions are met and their premises of production are adjacent to each other. (Pending on the Assembly Floor)
AB 1891 (Levine) of the current legislative session. Would allow a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending on the Assembly Floor)
AB 1295 (Levine), Chapter 640, Statutes of 2015. The bill created the craft distillers license with specific privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production.
AB 1233 (Levine) of 2015. Would have allowed a licensed distilled spirits manufacturer to sell up to three bottles of product authorized to be produced or bottled by or for the licensee to each person at a tasting on the licensee's premises. (Referred to interim study by the Assembly Governmental Organization Committee)
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531 FN: 0005089
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1986
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18
AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak
NO VOTE RECORDED: Bradford, Lara
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 73-0, 5/10/18 (Consent) - See last page for vote
SUBJECT: Craft distillers: alcoholic beverage licensees: donations
DIGEST: This bill expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to nonprofit organizations for the purpose of assisting in fund-raising efforts.
Senate Floor Amendments of 8/20/18 remove beer and wine wholesalers that also holds an importer’s license from the provisions of the bill that allow other alcohol licensees from providing services to assist in nonprofit events.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Authorizes ABC to issue a craft distiller’s license that authorizes the manufacture of distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 100,000 gallons of distilled spirits per fiscal year.
- Authorizes a craft distiller to sell up to 2.25 liters of prepackaged containers of the licensee’s spirits per day per consumer to a person attending tastings.
- Provides that the Act does not prohibit various alcoholic beverage licensees, including distilled spirits manufacturers, from giving or selling beverages, as specified, to certain charities and prescribes conditions in this regard.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
This bill:
- Expands an existing Tied-house exception within the Act to allow a licensed craft distiller to give or sell distilled spirits to specified non-profit organizations for the purpose of assisting in fund raising efforts.
- Prohibits a nonprofit entity that also holds a permanent retail license from using any of the donated or purchased alcoholic beverages in the exercise of any privileges or business under its permanent retail license.
- Allows specified licensees authorized to donate or sell alcoholic beverages to a nonprofit, as specified, to also provide services to and assist the nonprofit in connection with an event conducted under a temporary licensed issued by ABC.
Comments
Purpose of the bill. According to the author’s office, “California is home to an ever-growing and vibrant beverage industry, and our laws should promote opportunities for them to grow their brands and customer base. This legislation is a modest attempt to allow craft distillers to have privileges already granted to other beverage industries in California. By allowing them the ability to donate their products to a nonprofit, not only do they garner good will in the community, but it helps the nonprofit put on a more inclusive and worthwhile event.”
Craft distiller license. A craft distiller license, also known as a Type 74 license, was created in 2015. A holder of a craft distiller license is authorized to manufacture up to a total of 100,000 gallons of distilled spirits per fiscal year. A licensee is also authorized to sell up to the equivalent of 2.25 liters per day per consumer to a consumer attending an instructional tasting conducted by the licensee.
The licensee is also authorized to sell all beers, wines, brandies, or distilled spirits to consumers for consumption on the premises in a bona fide eating place owned by the licensee. The licensee is also authorized to have upon its licensed premises all beer, wines, and distilled spirits, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Additionally the holder of a craft distiller’s license is authorized to hold ownership in up to two on-sale general licenses.
The current craft distiller license does not allow a craft distiller to donate their products to nonprofits for fundraising activities, a privilege that is granted to various other licensees. According to ABC, there are currently 88 craft distiller’s licenses that would be able to take advantage of this new privilege.
Related/Prior Legislation
SB 1164 (Skinner, 2018) makes various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Appropriations Committee)
AB 1890 (Levine, 2018) allows a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, as long as specified conditions are met and their premises of production are adjacent to each other. (Pending on the Assembly Floor)
AB 1891 (Levine, 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending on the Assembly Floor)
AB 1295 (Levine, Chapter 640, Statutes of 2015) created the craft distillers license with specific privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production.
AB 1233 (Levine, 2015) would have allowed a licensed distilled spirits manufacturer to sell up to three bottles of product authorized to be produced or bottled by or for the licensee to each person at a tasting on the licensee’s premises. (Referred to interim study by the Assembly Governmental Organization Committee)
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
OPPOSITION: (Verified 8/21/18)
Alcohol Justice
ASSEMBLY FLOOR: 73-0, 5/10/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte
8/21/18 18:55:44
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1986
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18
AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak
NO VOTE RECORDED: Bradford, Lara
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 73-0, 5/10/18 (Consent) - See last page for vote
DIGEST: This bill expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to nonprofit organizations for the purpose of assisting in fund-raising efforts.
Senate Floor Amendments of 8/8/18 add chaptering out language in case this bill and SB 1164 (Skinner, 2017) are both enacted.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Authorizes ABC to issue a craft distiller’s license that authorizes the manufacture of distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 100,000 gallons of distilled spirits per fiscal year.
- Authorizes a craft distiller to sell up to 2.25 liters of prepackaged containers of the licensee’s spirits per day per consumer to a person attending tastings.
- Provides that the Act does not prohibit various alcoholic beverage licensees, including distilled spirits manufacturers, from giving or selling beverages, as specified, to certain charities and prescribes conditions in this regard.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
This bill:
- Expands an existing Tied-house exception within the Act to allow a licensed craft distiller to give or sell distilled spirits to specified non-profit organizations for the purpose of assisting in fund raising efforts.
- Prohibits a nonprofit entity that also holds a permanent retail license from using any of the donated or purchased alcoholic beverages in the exercise of any privileges or business under its permanent retail license.
- Allows a licensee authorized to donate or sell alcoholic beverages to a nonprofit, as specified, to also provide services to and assist the nonprofit in connection with an event conducted under a temporary licensed issued by ABC.
Comments
Purpose of the bill. According to the author’s office, “California is home to an ever-growing and vibrant beverage industry, and our laws should promote opportunities for them to grow their brands and customer base. This legislation is a modest attempt to allow craft distillers to have privileges already granted to other beverage industries in California. By allowing them the ability to donate their products to a nonprofit, not only do they garner good will in the community, but it helps the nonprofit put on a more inclusive and worthwhile event.”
Craft distiller license. A craft distiller license, also known as a Type 74 license, was created in 2015. A holder of a craft distiller license is authorized to manufacture up to a total of 100,000 gallons of distilled spirits per fiscal year. A licensee is also authorized to sell up to the equivalent of 2.25 liters per day per consumer to a consumer attending an instructional tasting conducted by the licensee.
The licensee is also authorized to sell all beers, wines, brandies, or distilled spirits to consumers for consumption on the premises in a bona fide eating place owned by the licensee. The licensee is also authorized to have upon its licensed premises all beer, wines, and distilled spirits, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Additionally the holder of a craft distiller’s license is authorized to hold ownership in up to two on-sale general licenses.
The current craft distiller license does not allow a craft distiller to donate their products to nonprofits for fundraising activities, a privilege that is granted to various other licensees. According to ABC, there are currently 88 craft distiller’s licenses that would be able to take advantage of this new privilege.
Related/Prior Legislation
SB 1164 (Skinner, 2018) makes various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Appropriations Committee)
AB 1890 (Levine, 2018) allows a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, as long as specified conditions are met and their premises of production are adjacent to each other. (Pending on the Assembly Floor)
AB 1891 (Levine, 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending on the Assembly Floor)
AB 1295 (Levine, Chapter 640, Statutes of 2015) created the craft distillers license with specific privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production.
AB 1233 (Levine, 2015) would have allowed a licensed distilled spirits manufacturer to sell up to three bottles of product authorized to be produced or bottled by or for the licensee to each person at a tasting on the licensee’s premises. (Referred to interim study by the Assembly Governmental Organization Committee)
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
Alcohol Justice
ASSEMBLY FLOOR: 73-0, 5/10/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte
8/10/18 11:20:11
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1986
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 10-0, 6/12/18
AYES: Dodd, Wilk, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Portantino, Vidak
NO VOTE RECORDED: Bradford, Lara
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 73-0, 5/10/18 (Consent) - See last page for vote
DIGEST: This bill expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to nonprofit organizations for the purpose of assisting in fund-raising efforts.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Authorizes ABC to issue a craft distiller’s license that authorizes the manufacture of distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 100,000 gallons of distilled spirits per fiscal year.
- Authorizes a craft distiller to sell up to 2.25 liters of prepackaged containers of the licensee’s spirits per day per consumer to a person attending tastings.
- Provides that the Act does not prohibit various alcoholic beverage licensees, including distilled spirits manufacturers, from giving or selling beverages, as specified, to certain charities and prescribes conditions in this regard.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
This bill:
- Expands an existing Tied-house exception within the Act to allow a licensed craft distiller to give or sell distilled spirits to specified non-profit organizations for the purpose of assisting in fund raising efforts.
- Prohibits a nonprofit entity that also holds a permanent retail license from using any of the donated or purchased alcoholic beverages in the exercise of any privileges or business under its permanent retail license.
- Allows a licensee authorized to donate or sell alcoholic beverages to a nonprofit, as specified, to also provide services to and assist the nonprofit in connection with an event conducted under a temporary licensed issued by ABC.
Comments
Purpose of the bill. According to the author’s office, “California is home to an ever-growing and vibrant beverage industry, and our laws should promote opportunities for them to grow their brands and customer base. This legislation is a modest attempt to allow craft distillers to have privileges already granted to other beverage industries in California. By allowing them the ability to donate their products to a nonprofit, not only do they garner good will in the community, but it helps the nonprofit put on a more inclusive and worthwhile event.”
Craft distiller license. A craft distiller license, also known as a Type 74 license, was created in 2015. A holder of a craft distiller license is authorized to manufacture up to a total of 100,000 gallons of distilled spirits per fiscal year. A licensee is also authorized to sell up to the equivalent of 2.25 liters per day per consumer to a consumer attending an instructional tasting conducted by the licensee.
The licensee is also authorized to sell all beers, wines, brandies, or distilled spirits to consumers for consumption on the premises in a bona fide eating place owned by the licensee. The licensee is also authorized to have upon its licensed premises all beer, wines, and distilled spirits, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Additionally the holder of a craft distiller’s license is authorized to hold ownership in up to two on-sale general licenses.
The current craft distiller license does not allow a craft distiller to donate their products to nonprofits for fundraising activities, a privilege that is granted to various other licensees. According to ABC, there are currently 88 craft distiller’s licenses that would be able to take advantage of this new privilege.
Related/Prior Legislation
SB 1164 (Skinner, 2018) makes various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Appropriations Committee)
AB 1890 (Levine, 2018) allows a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, as long as specified conditions are met and their premises of production are adjacent to each other. (Pending on the Assembly Floor)
AB 1891 (Levine, 2018) allows a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending on the Assembly Floor)
AB 1295 (Levine, Chapter 640, Statutes of 2015) created the craft distillers license with specific privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production.
AB 1233 (Levine, 2015) would have allowed a licensed distilled spirits manufacturer to sell up to three bottles of product authorized to be produced or bottled by or for the licensee to each person at a tasting on the licensee’s premises. (Referred to interim study by the Assembly Governmental Organization Committee)
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
None received
Alcohol Justice
ASSEMBLY FLOOR: 73-0, 5/10/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Cooley, Friedman, Cristina Garcia, Obernolte
7/3/18 15:49:37
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2017 - 2018 Regular
Bill No: AB Hearing Date: 6/12/2018
Author: | Cunningham | ||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to nonprofit organizations for the purpose of assisting in fund-raising efforts.
ANALYSIS:
Existing law:
- Establishes the Department of Alcoholic Beverage Control (ABC) and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages in this state and the collection of license fees.
- Separates the alcoholic beverage industry into three component parts, or tiers, of the manufacturer (including breweries, wineries, and distilleries), wholesaler, and retailer (both on-sale and off-sale). This is referred to as the “tied-house” law or “three-tier” system. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the “three-tier” system.
- Authorizes the Department of ABC to issue a craft distiller’s license that authorizes the manufacture of distilled spirits, subject to specified conditions, including that the licensee manufacture no more than 100,000 gallons of distilled spirits per fiscal year.
- Authorizes a craft distiller to sell up to 2.25 liters of prepackaged containers of the licensee’s spirits per day per consumer to a person attending tastings.
- Provides that the ABC Act does not prohibit various alcoholic beverage licensees, including distilled spirits manufacturers, from giving or selling beverages, as specified, to certain charities and prescribes conditions in this regard.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine, and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
This bill:
- Expands an existing Tied-house exception within the Act to allow a licensed craft distiller to give or sell distilled spirits to specified non-profit organizations for the purpose of assisting in fund raising efforts.
- Prohibits a nonprofit entity that also holds a permanent retail license from using any of the donated or purchased alcoholic beverages in the exercise of any privileges or business under its permanent retail license.
- Allows a licensee authorized to donate or sell alcoholic beverages to a nonprofit, as specified, to also provide services to and assist the nonprofit in connection with an event conducted under a temporary licensed issued by ABC.
Background
Purpose of the bill. According to the author’s office, “California is home to an ever-growing and vibrant beverage industry, and our laws should promote opportunities for them to grow their brands and customer base. This legislation is a modest attempt to allow craft distillers to have privileges already granted to other beverage industries in California. By allowing them the ability to donate their products to a nonprofit, not only do they garner good will in the community, but it helps the nonprofit put on a more inclusive and worthwhile event.”
Craft distiller license. A craft distiller license, also known as a Type 74 license, was created in 2015. A holder of a craft distiller license is authorized to manufacture up to a total of 100,000 gallons of distilled spirits per fiscal year. A licensee is also authorized to sell up to the equivalent of 2.25 liters per day per
consumer to a consumer attending an instructional tasting conducted by the licensee.
The licensee is also authorized to sell all beers, wines, brandies, or distilled spirits to consumers for consumption on the premises in a bona fide eating place owned by the licensee. The licensee is also authorized to have upon its licensed premises all beer, wines, and distilled spirits, regardless of source, for sale or service only to guests during private events or private functions not open to the general public. Additionally the holder of a craft distiller’s license is authorized to hold ownership in up to two on-sale general licenses.
The current craft distiller license does not allow a craft distiller to donate their products to nonprofits for fundraising activities, a privilege that is granted to various other licensees. According to ABC, there are currently 88 craft distiller’s licenses that would be able to take advantage of this new privilege.
Prior/Related Legislation
SB 1164 (Skinner, 2018) would make various changes to the craft distiller’s license, including eliminating the requirement that a person must attend a tasting before being able to purchase prepackaged containers of the licensee’s spirits directly from the craft distiller and increasing the maximum amount of distilled spirits that a craft distiller is permitted to manufacture from 100,000 gallons to 150,000. (Pending in the Assembly Governmental Organization Committee)
AB 1890 (Levine, 2018) would allow a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, as long as specified conditions are met and their premises of production are adjacent to each other. (Pending in the Senate Governmental Organization Committee)
AB 1891 (Levine, 2018) would allow a licensed craft distiller to instruct consumers and conduct tastings on the premises of an on-sale and off-sale retailer, as long as certain specified conditions are met. (Pending in the Senate Governmental Organization Committee)
AB 1295 (Levine, Chapter 640, Statutes of 2015) created the craft distillers license with specific privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production.
AB 1233 (Levine, 2015) would have allowed a licensed distilled spirits manufacturer to sell up to three bottles of product authorized to be produced or bottled by or for the licensee to each person at a tasting on the licensee’s premises. (Referred to interim study by the Assembly Governmental Organization committee)
AB 933 (Skinner, Chapter 366, Statutes of 2013) granted licensed distilled spirits manufacturers and licensed brandy manufacturers the privilege to conduct consumer tastings on their licensed premises and to charge for those tastings.
AB 949 (Quirk, 2013) would have authorized licensed distilled spirits manufacturers to charge consumers for tastings and would have imposed additional conditions on the provision of tastings by the licensee, including limiting the size and number of tastes. Also, would have provided that a distilled spirits manufacturer’s license authorizes the licensee to serve and sell food, general merchandise, and nonalcoholic beverages for consumption on or off the licensed premises. (Held in the Assembly Rules Committee)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT:
None received
OPPOSITION:
Alcohol Justice
Date of Hearing: May 2, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1986
Author:(Cunningham) – As Amended Ver:April 11, 2018
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill makes assorted changes to the Alcoholic Beverage Control Act related to the donation or selling of alcoholic beverages to certain nonprofits. Specifically, this bill:
- Allows craft distillers to give, or to sell at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control (ABC), distilled spirits to certain nonprofits for specified purpose.
- Prohibits a nonprofit entity that also holds a permanent retail license from using any of the donated or purchased alcoholic beverages in the exercise of any privileges or business under its permanent retail license.
- Allows a licensee authorized to donate or sell alcoholic beverages to a nonprofit, as specified, to also provide services to and assist the nonprofit in connection with an event conducted under a temporary licensed issued by ABC.
FISCAL EFFECT:
Negligible state costs.
COMMENTS:
- Background and purpose. Existing law allows specified alcoholic beverage manufacturers, producers, and rectifiers to donate their products to certain nonprofit organizations, such as fraternal orders, civic leagues, and religious groups, for fundraising efforts.
According to the author, AB 1986 will provide greater licensing equity between craft distilled spirits and other manufactures and producers. This bill also clarifies that a licensee may provide services to, or otherwise assist, a nonprofit in connection with an event conducted under a temporary license issued by ABC.
- Related legislation. AB 1986 is one of a number of bills being heard today related to craft distillers. AB 1890 (Levine) allows a licensed craft distiller to share a common area with a licensed winegrower or a licensed small beer manufacturer, if certain conditions are met, and AB 1891 (Levine) allows craft distillers to instruct consumers and conduct tastings at an on-sale and off-sale retail licensed premise.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 18, 2018
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
ABPCA Bill Id:AB 1986 (
Author:Cunningham) – As Amended Ver:April 11, 2018
SUBJECT: Craft distillers: alcoholic beverage licensees: donations
SUMMARY: Expands an existing Tied-house exception within the Alcoholic Beverage Control Act (Act) to allow licensed craft distillers to give or sell distilled spirits to specified non-profit organizations for the purpose of assisting in fund-raising efforts. Specifically, this bill:
1) Allows craft distillers to give or sell distilled spirits to certain non-profit organizations, as specified, at prices other than those contained in schedules filed with the Department of Alcoholic Beverage Control (ABC).
2) Provides a nonprofit corporation, organization, or association that is authorized to purchase or accept donations of alcoholic beverages pursuant to this section, and that also holds a permanent retail license issued pursuant to this division, shall not use any alcoholic beverage so purchased or donated in the exercise of any privileges or business under its permanent retail license.
3) Provides a licensee authorized to donate or sell alcoholic beverages to a non-profit corporation, organization, or association pursuant to this section may also provide services to and otherwise assist the corporation, organization, or association in connection with an event conducted under a temporary license issued by ABC.
EXISTING LAW:
1) Establishes ABC and grants it the exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature.
2) Provides for various annual fees for the issuance of alcoholic beverage licenses that vary depending upon the type of license issued.
3) Separates the alcoholic beverage industry into three component parts, or tiers, (referred to as the "Tied-house" law or "three-tier" system), of manufacturer (including breweries, wineries and distilleries), wholesaler, and retailer (both on-sale and off-sale). The original policy rationale for this body of law was to: a) promote the state's interest in an orderly market; b) prohibit the vertical integration and dominance by a single producer in the marketplace; c) prohibit commercial bribery and protect the public from predatory marketing practices; and, d) discourage and/or prevent the intemperate use of alcoholic beverages. Generally, other than exceptions granted by the Legislature, the holder of one type of license is not permitted to do business as another type of licensee within the "three-tier" system.
4) Provides that nothing in that law prohibits specified licensees from giving or selling beer, wine, or distilled spirits, as applicable, to certain nonprofit organizations, as specified, at prices other than those contained in schedules filed with ABC.
5) Creates a "craft distiller's license" in the Act with specified privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production. A licensed craft distiller is authorized to sell to a consumer participating in a distilled spirits tasting, on the distiller's licensed premises, up to the equivalent of 2.25 liters of distilled spirits in any combination of prepackaged containers per day.
6) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages: namely, beer, wine and distilled spirits, for consumption on the premises (such as at a restaurant or bar). An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill. According to the author's office, this bill is intended to provide greater licensing equity between small craft distilled spirits manufacturers and beer and wine producers.
The author's office notes that current law does not allow holders of a "craft distillers" license (Type 74) to give or sell distilled spirits products to non-profit organizations to assist them in fund-raising efforts. However, current law permits a licensed distilled spirits manufacturer, rectifier, or a distilled spirits manufacturer’s agent to give or sell distilled spirits to certain non-profit organizations, as specified.
As an example, the author's office points to a local licensed craft distiller, which cannot donate a gift basket containing a bottle of distilled spirits to a local charity for its silent auction. Yet, the importer of Il Convento Limoncello, produced in Italy, can be donated (by the importer) to the same charitable event.
According to the author’s office, this bill is intended to allow licensed rectifiers to support charities in the same manner as the State’s wineries, breweries, and distilled spirits manufacturers and importers.
The bill would also clarify that a licensee authorized to donate or sell alcoholic beverages may provide services or otherwise assist a nonprofit organization in connection with an event conducted under a temporary license issued by ABC.
Prior legislation. AB 1295 (Levine), Chapter 640, Statutes of 2015. Created a new "craft distiller's license" in the Act with specified privileges and limited to persons who manufacture less than 100,000 gallons of distilled spirits annually, exclusive of brandy production. This bill also modifies an existing provision of law that currently allows distillers to offer six, one-quarter ounce tastings, per individual/per day, to instead permit distillers to combine the current limitation into one single 1.5 ounce tasting that may also include a non-alcoholic mixer.
SB 1022 (Strickland), Chapter 281, Statutes of 2010. Granted a Tied-house exception within the Act to allow rectifiers to give or sell beer to specific non-profit organizations.
SB 108 (Wiggins) Chapter 246, Statutes of 2007. Modified an existing provision of law that allows wine orders to be taken at wine tasting events held by specified non-profit organizations to include three additional types of non-profit organizations - civic leagues, social organizations and voluntary employees' beneficiary associations.
AB 323 (Evans) Chapter 131, Statutes of 2007. Made modifications to the Act to enable custom crush wine producers (boutique wineries) to donate and pour their wine at winetasting events conducted by non-profit organizations.
SB 88 (Chesbro) Chapter 588, Statutes of 2003. Created a new ABC wine sales event permit to allow a winegrowers to sell bottled wine at charity events.
AB 1505 (Wiggins) Chapter 270, Statutes of 2003. Provided that wine may not be sold or orders solicited, when a wine tasting is held off the winegrower's premises at an event sponsored by a private nonprofit organization, as defined, except that the winegrower would be permitted to accept orders for the sale of wine when the sales transaction is completed at the winegrower's premises.
AB 2520 (Thomson) Chapter 384, Statutes of 2000. Authorized the ABC to issue a certified farmers market permit to allow winegrowers to sell wine produced and bottled by the winegrower entirely from grapes grown by the winegrower at such venues.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
California Teamsters
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Discussed in Hearing
1MIN
Assembly Floor
1MIN
Senate Floor
2MIN
Senate Standing Committee on Governmental Organization
Bill Author
Bill Co-Author(s):